Six Months on the Warsaw Office Market

Polish Office Research Forum (PORF) published data on the Warsaw office market for Q2 2017. The data was prepared in collaboration with the team of analysts (CBRE, Colliers International, Cushman & Wakefield, JLL, Knight Frank and Savills).

Warsaw Office Market – Q2 2017

ca. 5 161 100 sq. m – modern office space in Warsaw at the end of the first half of 2017;

ca. 131 000 sq. m – modern office space delivered to the metropolitan market from the beginning of 2017. The market increased the resources by 47 200 sq. m in Q2 implemented within 6 projects, the largest of which is modernization of Ethos (12 100 sq. m);

13.9% – vacancy rate at the end of June 2017 (decrease by 0.1 percentage point in comparison to the previous quarter and decrease by 1.5 percentage point in comparison to the analogical period in the previous year). It indicates that availability of office space amounted to 715 800 sq. m. The vacancy rate totaled 13.2% in the city center, whereas outside the city center – 14.3%;

391 400 sq. m – demand for office space in Warsaw from the beginning of 2017. In Q2, 200 500 sq. m were rented on the metropolitan market. The highest activity was recorded in the following zones: City Center (64 000 sq. m ) and Mokotów district (48 500 sq. m);

56% – the highest share in the structure of demand was recorded within new contracts. The renegotiations were responsible for 28% of the registered demand, whereas expansions – for 16%. Pre-let transactions were responsible for almost 17% of demand for office space;

18 300 sq. m – the size of space for the largest transaction concluded on the Warsaw market in the first six months of 2017. It is renewal of lease contract by Millenium Bank in Harmony Office Center. The largest transactions are also: pre-lease contract concluded by Citi Service Center Poland in Generation Park X (13 600 sq. m), expansion and renewal of contract by Alior Bank in Łopuszańska Business Park (13 400 sq. m) as well as expansion and renewal of contract by AstraZeneca in Postępu 14 (13 200 sq. m).